Horseshoe Lights

Location

The historic Horseshoe Lights gold-copper mine and associated tenements are located approximately 800 km north-northeast of Perth and 140 km north of Meekatharra .

The Horseshoe Lights Project comprises seven tenements that cover an area of approximately 33 square kilometres.

Production History

The Horseshoe Lights deposit was discovered in 1946 and was in production up until 1994.The total life of mine production to 1994 is summarised in the table below:

Period

Owner

Type

Tonnes

Au (g/t)

Cu (%)

Ag (g/t)

Hg (g/t)

Total

3,299,120

2.9

1.7

27.5

16.0

1946-87

Various

Gold ore

1,519,446

4.2

1988

Barrack

Gold ore

90,360

4.6

1988-91

Barrack

Total treated

934,703

1.9

2.7

44.0

26.3

1992-94

Sabminco

Total treated

754,611

1.6

3.9

66.0

37.3

In-situ Mineral Resources

In 2013 the Company commissioned CSA Global Pty Limited to undertake a mineral resource estimation using the historical drilling database and the results from the company’s 2010/11 and 2012/13 drilling programmes (94 RC drill holes, 9 Diamond drill holes and 3 Diamond Tails for 19,951 m).

Category

Tonnes (Mt)

Cu (%)

Au (g/t)

Ag (g/t)

Cu metal (tonnes)

Au metal (oz)

Ag metal (k oz)

Total

12.85

1.00

0.1

1.9

128,600

36,000

793.4

Measured

1.73

1.04

0.0

0.5

18,000

1,900

28.8

Indicated

2.43

0.95

0.0

0.7

23,200

3,400

52.2

Inferred

8.69

1.01

0.1

2.6

87,400

30,700

712.4

Stockpiles

The mineral resource estimation for low-grade copper-bearing material remaining on surface at Horseshoe Lights in stockpiles, dumps and tailings is given below:

Type

Category

Tonnage (t)

Cu (%)

Cu metal (tonnes)

Total

1,702,000

0.52

8,800

Flotation Tailings

Inferred

1,420,000

0.47

6,700

M15 Stockpile

Inferred

244,000

0.80

1,900

Subgrade Stockpile

Inferred

38,000

0.50

200

Exploration Potential

The potential to host additional copper-gold resources within the current tenements can be supported by the following evidence:

Past production of around 3.3 Mt at 1.7% Cu and 2.9 g/t Au demonstrates the project area is significantly mineralised.

The area has major regional shear structures that have tended to displace the mineralised zones that were being mined (such as the east northeast striking fault recognised late during the mining that terminated the Southern end of the main ore-body. These structures have excellent potential to yield en-echelon ore-body repetitions elsewhere within the project area.

There has been extensive surface disturbance, potentially obscuring any surface expression of mineralised extensions and hampering access for drilling; and as a result there has been little exploration to locate potentially displaced mineralisation.

Potential also exists for en-echelon repetitions of the Horseshoe Lights deposit, especially in the area immediately east of the pit, near the CIP tailings dam and vat leach areas. These areas have only received limited drilling in the past.